SIPP. The Saskatchewan Institute of Public Policy. Public Policy Paper Series. Cultural Policy in Saskatchewan

Transcription

1 The Saskatchewan Institute of Public Policy Public Policy Paper Series Cultural Policy in Saskatchewan by Simon Weseen and M. Rose Olfert March 2008 Public Policy Paper 54 $5.00; ISBN# SIPP

2 The Saskatchewan Institute of Public Policy (SIPP) was created in 1998 as a partnership between the University of Regina, the University of Saskatchewan and the Government of Saskatchewan. It is, however, constituted as an institute at the University of Regina. SIPP is committed to expanding knowledge and understanding of the publicpolicy concerns in Canada with a particular focus on Saskatchewan and Western Canada generally. It is a non-profit, independent and non-partisan Institute devoted to stimulating public-policy debate and providing expertise, experience, research and analysis on social, economic, fiscal, environmental, educational and administrative issues related to public policy. The Institute will assist governments and private business by supporting and encouraging the exchange of ideas and the creation of practical solutions to contemporary policy challenges. The founding partners intended the Institute to have considerable flexibility in its programming, research, contracting and administration so as to maximize opportunities for collaboration among scholars in universities and interested parties in public and private sectors. The Institute is overseen by a Board of Directors drawn from leading members of the public, private and academic community. The Board is a source of guidance and support for SIPP s goals in addition to serving a managerial and advisory role. It assists SIPP with fostering partnerships with non-governmental organizations, the private sector and the expanding third sector. Saskatchewan enjoys a long and successful tradition of building its own solutions to the challenges faced by the province s citizens. In keeping with this tradition, SIPP will, in concert with scholars and practitioners of public policy, bring the best of the new ideas to the people of Saskatchewan. Disclaimer: This paper demonstrates the independent thought of the author. While we are pleased to be able to publish this body of work through the Public Policy Paper series, the views expressed are not necessarily the views of the Institute.

3 Cultural Policy in Saskatchewan by Simon Weseen and M. Rose Olfert PUBLIC POLICY PAPER #54 MARCH 2008 ISBN #: ISSN #:

4 ABSTRACT Cultural policy has a history of being relegated to secondary importance or being supported in an ad hoc way by governments in many jurisdictions in North America and around the world. This has occurred despite the fact that there is a growing literature demonstrating the importance of the arts and culture in the economic vitality of places both as a growth sector in itself and as a contributor to quality of life, enhancing population growth and retention. This paper reviews the various organizations and groups involved in the arts and culture in Saskatchewan, their funding sources, and their relationships. The findings reveal a complex network of funders and producers of arts and culture. A series of reviews of the sector points to an implicit policy that has been largely reactive, lacking coherent long-term objectives for the sector, and often lacking transparency. Conclusions are drawn regarding the elements of a framework for developing a cultural policy for the province.

5 1. INTRODUCTION The arts and culture, as vehicles of creative expression, are primary mechanisms through which individuals derive a sense of place and communities develop a sense of identity. In addition, a growing body of literature suggests that, indeed, the arts and culture are strong catalysts for both community health and economic growth (Markusen and Schrock, 2006; Markusen and King, 2003; Bayliss, 2004; Ottiaviano and Peri, 2006; Gray, 1996) and play a key role in determining where people choose to live and work (Florida, 2002). Despite this, cultural policy has a history of being relegated to secondary importance or being supported in an ad hoc way by governments in many jurisdictions in North America and around the world. This is partly attributable to the difficulty of quantifying the benefits of arts and culture as economic drivers and in terms of their effect on population growth and retention. In addition to being a growth industry in itself, the arts and culture generate externalities or social benefits, which are positive spillovers beyond the incomes of artists or the products and services directly produced. The primary economic benefits to a region of arts and culture are often dispersed in a number of other sectors, such as tourism and educational institutions. The externalities are, by definition, difficult to identify and quantify. Nevertheless, a realistic assessment of the value of the sector will inform new policy directions that will allow the benefits of a thriving arts and culture sector to be captured in the province. An effective public policy for the cultural sector is much more than funding allocations in response to individual and organization lobbying efforts. While an arm slength approach may be appropriate in terms of funding specific projects, a well-defined framework, goals, objectives, and priorities are essential elements of a cultural policy. Individuals choose their location of residence and/or business for a variety of reasons, including economic opportunity. However, the local (or accessible) amenities or quality of life are also important determinants of location as people vote with their feet according to their preferences and the opportunities they face (Cebula and Vedder, 1973; Deller et al., 2001; Getz and Huang, 1978; Herzog and Schlottmann, 1993; Knapp and Graves, 1989; Rappaport, 2004; Roback, 1982; Wojan and McGranahan, 2004). For a jurisdiction like Saskatchewan, where net out-migration of population has been the norm for several decades, capitalizing on the role of the arts and culture to improve the quality of life may be a valuable policy option. Saskatchewan has a long history of cultural activity and is home to numerous organizations that work tirelessly to provide cultural opportunities to the province s citizens. The Saskatchewan Arts Board (SAB), for example, is the oldest entity of its kind in North America (Saskatchewan Arts Board Website, 2007). The Government of Saskatchewan, through its Department of Culture, Youth, and Recreation 1 works with organizations like the Saskatchewan Arts Board, SaskCulture, and the Saskatchewan Arts Alliance to promote the arts and culture. Still, it is evident that much more can be done. Numerous reviews of the arts and culture sector in the province suggest that cultural policy in Saskatchewan can be characterized as reactive rather than proactive and has suffered from a lack of coordination and transparency, and that financial support has been both limited and inconsistent. A more efficient and focused means of assessing the value and requirements for the development of this sector may be warranted. The objective of this paper is to provide an overview of the cultural policy that is implicit in the various agencies and funding arrangements that exist in Saskatchewan, to review funding levels in the province and in other jurisdictions, and to identify the parameters of a framework for the development of an effective and transparent cultural policy. This inference regarding the implicit policy is necessary because there is no explicit cultural policy in Saskatchewan, though Government of Saskatchewan annual reports from 2000 on refer to the need for one. The target audience is both government (at all levels) and the general public. Bringing cultural policy into the mainstream would recognize arts and culture as a valuable economic driver and a public good, with investments in this A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 1

6 sector yielding direct and indirect economic and non-economic returns for the entire province. Saskatchewan has a solid base in the arts and culture sector including both universities, which offer education and training in the arts, and serve as consumers of the same. The development of a sound cultural policy can contribute to the attractiveness of the province for population retention and growth, as well as for national and international migrants in a highly competitive setting. The paper is organized into six sections. Section 2 provides an overview of the various cultural organizations in the province, thus presenting the context in which cultural policy in Saskatchewan presently functions. In this section, this paper provides an overview of the primary channels through which the government and lottery funding flows can be interpreted as playing a major role in implicit policy. Section 3 compares government expenditures on the cultural sector, while section 4 discusses some of the major reviews of past and present policy. Section 5 is a summary of the academic literature establishing linkages between cultural activity and economic vitality. Section 6 outlines the conclusions with respect to the desirable ingredients of a cultural policy for Saskatchewan. 2. SASKATCHEWAN S IMPLICIT CULTURAL POLICY The most recent cultural policy statement in Saskatchewan was published by the Conservative government in 1982 (receiving Cabinet endorsement in early 1983) with the official objective of establishing a coordinated, long-term, effective role for the government in promoting cultural development in the province. The report was the culmination of the work of the Cultural Policy Secretariat which began this assignment under the preceding New Democratic Party (NDP) government in July 1979 to produce a policy and recommend programming for the arts and culture. 2 The policy s five founding principles were stated as: 1) the crucial role of the creative individual; 2) universal participation; 3) community involvement; 4) Saskatchewan Culture First; and 5) government involvement (Saskatchewan Arts Board, 1997). The report establishes five goals for culture: 1) broaden public awareness; 2) increase public access; 3) preserve Saskatchewan s heritage; 4) provide opportunities for artists to develop skills and work on their professions; and 5) preserve and promote cultural heritage. While a 14-point strategy for goal attainment was articulated in the report of the Cultural Policy Secretariat, the policy has been criticized because it contains no specific discussion of the sector s stakeholders, their responsibilities, or the numerous interrelationships within the sector (Saskatchewan Arts Board, 1997). Further, it was argued that there was a disconnect between the work of the Cultural Policy Secretariat and the 1982 cultural policy. It seems the tremendous boom in lottery revenues in subsequent years largely derailed the implementation of the policy. Still the 1982 policy must be seen as a point of departure for understanding the structure of funding and the relationships among key players. The Annual Report of the newly (re-)formed Department of Culture, Youth and Recreation notes that the department is working to develop a cultural policy framework. Despite this, a review of subsequent annual reports does not reveal any progress on this objective. In order to infer how implicit cultural policy has evolved during the last 25 years, it is instructive to examine the main organizations involved in distributing funding, the primary sources of public funding, and the numerous policy decisions made by the provincial government s Department of Culture, Youth and Recreation. Funding flows to organizations are particularly important in light of the fact that the government is involved in the sector mainly in an arm s-length way. The size and direction of these flows are thus indicative of the major policy directions. A general overview of the 2 SIPP PUBLIC POLICY PAPER #54

7 cultural system, including sources of funding and major sector stakeholders, is provided in the upcoming paragraphs. This is followed by a summary of funding allocated by all levels of government. Cultural System Funding Overview The cultural sector in Saskatchewan encompasses hundreds of individual and institutional stakeholders who receive funding through a variety of grants and programs administered by key organizations within the system. The funding flow is instructive in identifying the key players and in portraying the relationships among groups in the system. Public funding for the sector is controlled by the provincial government s Department of Culture, Youth and Recreation. In addition to funding that flows from the General Revenue Fund (GRF) through the department, the cultural sector also receives some funding directly from the GRF. A second major source of funding is the lottery system. Figure 1 provides a schematic of the flow of funding from these two sources down through the sector. Solid lines indicate funding flows whose allocation may also be determined through a process of adjudication, or indicate influence and advice from the funding source to the recipients. Dashed lines indicate influence or adjudication without direct funding flows. As can be seen in Figure 1, funding from the GRF is either distributed directly by the Department of Culture, Youth and Recreation to stakeholders within the sector or by the Saskatchewan Arts Board (SAB), which receives an annual allocation from the GRF to distribute to a variety of arts and culture initiatives. Funding from the lotteries flows in fixed proportions to the areas of sport (50%), culture (35%), and recreation (15%). A portion of the cultural component of lottery funding is then allocated by SaskCulture to organizations within the cultural sector through grants and programs. While minor funding flows to the other groups represented in Figure 1, the major flow occurs between the Western Canadian Lottery Corporation (WCLC) and provincial cultural organizations (PCOs) 3 and is triggered by recommendations from SaskCulture. While the line between the SAB and PCOs is drawn in Figure 1 as a dashed line (representing no direct funding flows), a new initiative in the fall of 2007 may change this line of influence to include funding as well. This will be a major departure from the past relationship between the SAB and PCOs. Figure 1: Arts and Culture System Overview Source: Adapted from the Saskatchewan Arts Board, 1997 A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 3

8 In general, all organizations within the sector are funded by SaskCulture and the SAB or directly by the provincial government through the GRF. The SAB typically allocates funding to artists and artistrelated organizations, while SaskCulture focuses more on grassroots cultural organizations. The government allocates funding to a variety of initiatives (often on an ad hoc basis) across the sector. Some organizations receive funding from more than once source. A more detailed description of the funding system and the major stakeholders is presented below. 2.1 Sources of Provincial Funding The General Revenue Fund The General Revenue Fund (GRF) is the Government of Saskatchewan s revenue account that holds tax revenue collected from the people and businesses of Saskatchewan. It is the primary source of funding used for all discretionary spending as outlined in each provincial budget. On an annual basis, monies are allocated to various government departments both to cover their operating costs (or overhead) and to allocate to various programs, organizations, or infrastructure falling within their jurisdiction. In the case of the Department of Culture, Youth and Recreation, once government overhead is covered, transfers from the GRF flow to the sector indirectly through the Saskatchewan Arts Board, and may also flow directly from the GRF following changes introduced in the fall of Minor amounts also flow directly to three broad recipient groups (see Figure 1), including 1) various arts initiatives; 2) heritage initiatives; and 3) other (Saskatchewan Arts Board, 1997). In addition, some arts sector groups receive funding directly from the GRF, such as the Saskatchewan Arts Board, the Mackenzie Art Gallery, and the Centre of the Arts. Examples of heritage sector groups that receive GRF funding include the library system, the Saskatchewan Archives Board, the Saskatchewan Heritage Foundation, the Western Development Museum, Wanuskewin Heritage Park, and the Saskatchewan Science Centre. Other sector groups (a very small amount) that receive GRF transfers include Arts Heritage and Multicultural Grants (SaskCulture Website, 2007). Two other recipient groups, provincial cultural organizations (PCOs) and the multicultural sector, are primarily funded through Saskatchewan Lottery Trust Fund proceeds. The Lottery System Second only to the GRF as a source of public funding, lottery proceeds are a primary provider for cultural activities in Saskatchewan. Under the jurisdiction of the Interprovincial Lotteries Act, 1974 (an agreement between the three Prairie provinces), lottery activities are administered by the Western Canadian Lotteries Corporation (WCLC). Net proceeds from the Saskatchewan portion of lottery ticket sales are directed to the Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation, which is managed by three non-profit organizations: SaskCulture, SaskSport Inc., and the Saskatchewan Parks and Recreation Association Inc. As described earlier, SaskCulture is the organization responsible for advising on the allocation of the cultural component of the lottery proceeds to PCOs and allocates funds directly to various organizations and activities within the province. Referring again to Figure 1, organizations receiving lottery funding, directly or indirectly, can be categorized into five groups: 1) the Arts Sector; 2) the Heritage Sector; 3) the Multicultural Sector; 4) Provincial Cultural Organizations; and 5) Other Cultural Initiatives (Saskatchewan Arts Board, 1997). As noted above, the PCOs receive their funding directly from the WCLC upon the advice of SaskCulture and the SAB. Members of these groups receive funding from one or more of five funding blocks that are described in more detail in section 4 SIPP PUBLIC POLICY PAPER #54

9 2.2 SaskCulture Inc. In addition to supporting the Trust Fund, lottery proceeds are used to pay a license fee which is deposited into the government s GRF. The license fee is the negotiated annual amount that SaskSport must pay to the GRF (Saskatchewan Council of Cultural Organizations, 1997). The entire process of lottery funding disbursement is formalized through ongoing agreements with the three non-profit organizations mentioned above and the provincial government (Saskatchewan Council for Cultural Organizations, 1997). 2.2 Organizations The Department of Culture, Youth and Recreation The Department of Culture, Youth and Recreation, created in 1972 (and initially called the Department of Culture and Youth), is the provincial government organization responsible for developing arts policy that affects all other arts and cultural organizations in the province. It directly or indirectly controls all public funding that flows to various arts and cultural organizations in Saskatchewan and, in doing so, plays a primary role in how the arts and culture system functions. Public funding levels are established through the Treasury Board s annual allocation to cultural activities from the General Revenue Fund (GRF) and through the government s indirect involvement in the lottery system. As its name suggests, the Department of Culture, Youth and Recreation is also responsible for policy and funding related to the areas of youth, sport, and recreation. Responsibility for the arts and culture sector has not always resided in the same department. Indeed, the numerous changes in the department responsible for culture are indicative of the peripheral and uncertain status of this portfolio. Examples of the various departments responsible for culture include the Department of Culture and Youth; the Department of Parks, Recreation and Culture; and the Department of Municipal Affairs, Culture and Housing. The goals for the cultural sector may be inferred from the annual reports of the department since its most recent reformulation. In the report, one of the department s stated goals was that culture and recreation contribute to the financial health of the province (p. 9). Subsequent annual reports refer to the department working to create an environment where Saskatchewan s culture and heritage can thrive, and sustaining the breadth and quality of the cultural life in the province s communities. Among the noted accomplishments is the list of ways in which the government supports the sector through funding flows. In particular they highlight the importance of their arm slength involvement. The Saskatchewan Arts Board Created in 1948, the Saskatchewan Arts Board (SAB) is an arm s-length funding agency that receives annual funding from the provincial government (primarily through the GRF) and disburses it (as well as its own revenue) to the arts community in the form of grants, programs, and services. The SAB is governed by the Arts Board Act, 1997, which stipulates the Board s objectives in the following mandate: 1) to support and facilitate public access to and participation in the Arts; 2) to support the Saskatchewan Arts Community; 3) to foster excellence in the arts; 4) to encourage quality in creative expression and management of arts activity; A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 5

10 5) to support and encourage innovation and development in the arts through education, training, creation, production, presentation, touring and distribution, marketing collection, appreciation, preservation, research and study; 6) to support and encourage the arts of both aboriginal peoples and the ethnic communities of Saskatchewan; 7) to promote public appreciation and understanding of the arts; 8) to establish advisory processes by which the arts community can be involved in operational and program policy development for the Arts Board; and 9) to establish adjudication processes that ensure assessment by qualified persons from the arts community. (Saskatchewan Arts Board Website, 1997) The Arts Board carries out numerous functions related to promoting the arts and culture in Saskatchewan, including the provision of consultation services in areas such as community and organizational development, research, arts advocacy, and communications (Saskatchewan Arts Board Website, 2007). Organizations and programs funded by the Arts Board include the Artist in Residence Program, ArtsSmarts Saskatchewan, the Gallery Grant Program, the Independent Artists Grant Program, the Project Assistance Grant Program, the Indigenous Pathways Initiative, 4 the Aboriginal Arts and Culture Leadership Program, the Provincial Cultural Organization Global Grant Program, the Global Grants Multi-Year and Annual Assistance Programs, the Prince Edward Drama Scholarship, the Premier s Centennial Arts Scholarship, as well as some basic sponsorship initiatives. To receive support from any of these programs, organizations and individuals must meet programspecific eligibility requirements and then qualify through a peer-assisted adjudication process (Library and Archives Canada Website, 2007). The majority of these programs are run exclusively by the Arts Board, although some are run in partnership with SaskCulture and its associated lottery funding. The Arts Board also collects, preserves, and manages various art objects created by Saskatchewan artists (Library and Archives Canada Website, 2007). It is important to note that the Arts Board Act does not state the level of funding to be allocated by the provincial government and, in fact, does not guarantee any government funding at all. Furthermore, the Act states that the Arts Board itself and all of its belongings are property of the Crown. So although the Arts Board may have freedom to allocate funding as it sees fit, it is not autonomous from the provincial government. In an October 2007 announcement, the budget of the Saskatchewan Arts Board was doubled enabling the agency to move forward on recommendations made in the Minister s Advisory Committee on Status of the Artist and achieve the broad vision of ensuring cultural vibrancy and commercial viability of Saskatchewan artists (Saskatchewan Arts Board, 2007). As already noted, the possible changes include reconfiguring funding flows so that they are direct from the SAB to PCOs, representing a new relationship between these two groups. Perhaps more significantly, as a result of recommendations from the province s Music Industry Review report, responsibilities and funding for cultural industry PCOs was transferred from the lotteries to the GRF. While the funding increase marks a major commitment and some new directions are implied, the broader cultural policy framework remains largely unarticulated. SaskCulture Inc. Having initially evolved out of the Saskatchewan Council of Cultural Organizations (SCCO) 5 in 1997, SaskCulture is a volunteer organization that acts as a trustee for the cultural component of 6 SIPP PUBLIC POLICY PAPER #54

11 lottery proceeds, distributing funding to a network of cultural organizations and programs throughout Saskatchewan. Funding allocated to various organizations can be categorized into five separate blocks: 1) Provincial Cultural Organizations (PCOs); 2) Tri-partite; 3) SaskCulture; 4) Administered Contracts; and 5) Directed Funds (SaskCulture Website, 2007). The relative proportion of funding allocated in 2007 from each block is presented in Figure 2. Of the five blocks, PCOs are by far the largest recipient of lottery funding (through SaskCulture). These organizations have a mandate from the provincial government to serve as central resources within a specific cultural discipline. In order to qualify to become a PCO, an organization must be a volunteer non-profit organization that is deemed to be involved in delivering culture programs and services within Saskatchewan. In 2006, there were 31 PCOs in the province, such as Canadian Artists Representation/Le front des artistes canadiens (CARFAC) Saskatchewan Visual Artists, Conseil Cultural Fransaskois, Dance Saskatchewan Inc., Multi-cultural Council of Saskatchewan, and the Museums Association of Saskatchewan. The Tri-partite block of funding is directed towards the operation of the three arm s-length administration centres of the Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation and any other initiatives that fall under the jurisdiction of these three areas. Figure 2: Funding Allocated by SaskCulture, by Funding Block, 2007 Source: SaskCulture Website, 2007 The SaskCulture block of funds consists of an operating grant for that organization as well as funding for existing and new initiatives deemed of value to the entire arts and culture sector (SaskCulture Website, 2007). The Administered Contracts block of funds is directed at those programs that are administered predominantly by other groups, such as the SAB. Examples of these programs include the Artist in Residence Program, the Festivals Grant Program, the Gallery Grant Program, the Media Arts Grant Program, the Métis Cultural Development Fund, the Museums Grant Program, the Multicultural Initiatives Fund, and the Student Employment Experience Program. A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 7

12 The block of Directed Funds is allocated to various cultural initiatives by SaskCulture on direct orders from the minister responsible for arts and culture. In addition to allocating lottery funding, SaskCulture focuses on cultural networking, organizational development, advocacy and public awareness, and community engagement. It should be noted that the lottery system is not required to disclose the amount that it distributes to various organizations within the sector (SaskCulture Website, 2007). Saskatchewan Arts Alliance Established in 1984, the Saskatchewan Arts Alliance (SAA) defines itself as a non-profit coalition of arts organizations that provides a collective voice for the arts in Saskatchewan. It receives funding from the Arts Board and SaskCulture on a contract basis; however, in contrast to the Arts Board and SaskCulture, the SAA does not allocate funding to the cultural sector, but instead supports the arts and culture through: advocating healthy levels of public and private support; encouraging public acknowledgement of the arts; encouraging in assisting in the development of arts education; providing information related to the arts; and providing a forum for issues affecting the arts and cultural industries. (Saskatchewan Arts Alliance Website, 2007) Saskatchewan Cultural Industries Development Council Created by the provincial government in 1997, the Saskatchewan Cultural Industries Development Council s (SCIDC) mandate is to promote the development of industries related to book publishing, crafts, visual arts, film and video, and music and sound recording. The SCIDC accomplishes this primarily by providing policy direction to the provincial government and through the administration of its Cultural Industries Development Strategy (CIDS). According to the SCIDC s website, the CIDS has four broad objectives: to document and assess existing businesses to identify a critical mass of cultural industry activity; to consolidate existing information on each sector into one document and present a cogent plan for future development; to generate solutions to the problems and issues facing the cultural industries through a process of discussion and collaboration; and to develop proposals for initiatives that, whenever possible, address the needs of all, or more than one, of the individual cultural industries, without losing sight of industry-specific needs and perspectives. (Saskatchewan Cultural Industries Development Council Website, 2008) 8 SIPP PUBLIC POLICY PAPER #54

13 3. GOVERNMENT EXPENDITURES ON THE CULTURAL SECTOR Government expenditures on the cultural sector can be viewed, in part, as the value placed on this sector for its economic and quality-of-life/aesthetic contributions. In part, these expenditures can also be seen as an investment for support and development of the sector as an economic contributor in its own right. In addition, they may reflect the government s perception of the externalities or positive spillovers for the broader public that are not captured by the producers of cultural activities and artifacts or by the associated industries. Ideally, the size and strength of the sector would also be measured by the GDP value it generates to assess the appropriateness of government funding. In addition to being conceptually difficult, such an evaluation is beyond the scope of this paper. However, at the national level it is estimated that the cultural sector in Canada in 2007 contributed 3.8% of GDP and generated 6.9% of total employment (Banks, 2007). To put this in perspective, the agricultural sector was estimated to contribute 1.27% of GDP and about 3% of total Canadian employment. Although this paper focuses exclusively on Saskatchewan s provincial cultural policy, funding for the province s cultural sector comes from all three levels of government (provincial, federal, and municipal). It is useful to recognize the magnitude of the funding that originates from each source and how these funding levels compare with the other provinces, as considerable differences are apparent in the magnitude of expenditures by province. All funding numbers presented are in nominal terms, unless otherwise stated. Due to data availability, the numbers focus on the recent past as opposed to the entire time frame over which Saskatchewan s cultural policy is examined. The data for expenditures reported in this paper, for all levels of government, are derived from a survey administered as part of the Culture Statistics Program (Statistics, 2005). Included in the category of cultural activity are libraries, heritage resources, arts education, literary, performing, and visual arts, film and video, broadcasting, sound recording, multiculturalism, and assorted other cultural activities and facilities. All provincial and territorial government departments and agencies responsible for the support of the arts and culture sector were surveyed and response to the survey was mandatory. 3.1 Provincial Funding Total provincial spending on arts and culture in Saskatchewan is broken down into government capital and operating expenses, as well as capital and operating grants, contributions, and transfers. Table 1 provides a summary of provincial spending on the arts and culture sector in these categories. The methodology used by Statistics Canada in arriving at these totals makes it difficult to separate lottery funding and funding originating from the GRF as discussed in the previous section. It is also difficult to ascertain the level of direct funding that ends up in the hands of artists and arts organizations. Nonetheless, the category capital and operating grants, contributions, and transfers includes all lottery money designated for culture (through SaskCulture), as well as GRF funding allocated by the government to the Saskatchewan Arts Board and other organizations. In , the Saskatchewan Arts Board received approximately $4.3 million from the GRF, while SaskCulture received approximately $7 million from the lotteries. The remaining money (almost $38 million) was allocated directly by the government to other stakeholders within the sector. The categories operating expenditures and capital expenditures refer to expenditures incurred directly by the government and do not include money that is disbursed to independent groups within the sector. A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 9

14 Table 1: Total Provincial Funding for the Arts and Culture Sector, Nominal Dollars, Year Total Expenditures ($000s) Operating Expenditures ($000s) Capital Expenditures ($000s) Capital and Operating Grants, Contributions, and Transfers ($000s) ,525 29,828 3,737 35, ,209 29,437 3,153 36, ,373 32,077 4,352 38, ,969 34,046 5,626 44, ,583 33,901 5,034 46, ,733 34,159 4,240 49,333 Real to % 2% 1% 22% Source: Statistics Canada, 2007a The last row of Table 1, showing expenditure increases in real terms, reveals that total spending by the province on the cultural sector has increased by 12% (real dollars) between and Considering a growth rate of real GDP over this time period of about 11%, this represents an increase slightly in excess of total income in the province. The majority of this increase is in the area of grants, contributions, and transfers (22%), and to a lesser extent through increased operating expenditures of the government (2%). This is a good indication that increased provincial funding is finding its way to organizations and individuals within the cultural sector, although it says very little about the relative distribution of funding among the sector s various constituent groups and individual stakeholders. It should also be noted that during this same time period, the GRF grew by 11% (in real dollars), indicating that increases in cultural expenditures have kept pace with growth in the GRF. Statistics Canada expenditure categories can also be summarized into industry categories including arts, cultural industries, libraries, heritage, and other (Hill Strategies Research, 2006). In , the provincial government directed 65% of its cultural expenditures to heritage (39%) and libraries (26%). Of the remaining 35%, cultural industries and the arts received 22% and 6%, respectively, while other received 7% (Statistics Canada, 2007a). 3.2 Federal Funding On a Canada-wide basis, of the three levels of government, the federal government is the largest contributor to the cultural sector, although this is not necessarily the case for each individual province. For example, in Saskatchewan, federal funding in was just under $46 million, which is slightly more than half of the spending by the provincial government. In addition, a large proportion of this spending occurs in the form of operating expenditures and to a lesser extent grants, contributions, and transfers. Grants, contributions, and transfers by the federal government are 10 SIPP PUBLIC POLICY PAPER #54

15 typically between 20% and 25% of those made by the provincial government and are often administered by federal agencies such as the Canada Council for the Arts, which allocates funding directly to individual stakeholders. In real terms, cultural funding from the federal government has decreased in Saskatchewan by 8% between and Since capital and operating grants, contributions, and transfers have increased by 34% in real terms over this period, a significant redistribution of federal expenditures appears to have taken place. The overall decrease is of concern. Federal expenditures on the entire Saskatchewan arts and culture sector are presented in Table 2. As with provincial funding, federal expenditures can be broken down into industry categories. In Saskatchewan, funding is primarily directed towards cultural industries (53%) and to a lesser extent heritage (34%). The remaining expenditures are directed towards the arts (9%), and other (4%). Libraries in Saskatchewan did not receive any funding from the federal government (Statistics Canada, 2007b). Table 2: Total Federal Funding to the Arts and Culture Sector in Saskatchewan Year Total Expenditures ($000s) Operating Expenditures ($000s) Capital Expenditures ($000s) Capital and Operating Grants, Contributions, and Transfers ($000s) ,327 30,876 6,604 6, ,329 29,701 6,242 8, ,995 28,404 2,406 10, ,119 30,771 4,945 10, ,459 33,765 2,360 12, ,762 31,721 3,728 10,313 Real to % -9% -50% 34% Source: Statistics Canada, 2007b 3.3 Municipal Funding Comprehensive statistics on municipal funding were not available from Statistics Canada, although it is known that in municipal governments in Saskatchewan spent approximately $73 million on arts and cultural activities (Statistics Canada The Daily, 2005). These expenditures are significantly more than federal funding and slightly less than provincial funding. A review of government spending on culture conducted by Hill (2005) also published some general numbers. In contrast to federal funding, the majority of municipal funding in Canada in was directed towards heritage and libraries (80%). Multiculturalism, multidisciplinary, and other cultural activities received 19% of allocated funding, while the arts sector received the remaining 1% of total municipal funding (Hill, 2005). It should be noted, however, that this breakdown likely varies from province to province. A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 11

16 3.4 Funding Comparison with other Provinces Although this study focuses exclusively on Saskatchewan s provincial cultural policy and does not examine federal or municipal policy, further context can be provided by considering how funding from these three levels of government compares with funding received by the cultural sector in the other provinces. Table 3 presents total cultural expenditures by each of the provincial governments as well as the level of grants, contributions, and transfers given out by each government in Both categories are presented on a per capita basis as well. Table 3: Total and Per Capita Cultural Expenditures as well as Grants, Contributions, and Transfers by Provincial Governments in Province Total Expenditures ($000s) Source: Statistics Canada, 2007a Total Expenditures Per Capita ($) Capital and Operating Grants, Contributions, and Transfers ($000s) Capital and Operating Grants, Contributions, and Transfers Per Capita ($) Newfoundland 39, , Prince Edward Is. 11, , Nova Scotia 57, , New Brunswick 52, , Quebec 726, , Ontario 628, , Manitoba 111, , Saskatchewan 87, , Alberta 198, , British Columbia 264, , Average Given the wide variation in population among the provinces, per capita expenditures are a more useful benchmark for comparing the level of support provided by each provincial government. Perhaps most revealing about these per capita funding numbers is how little governments actually invest on a per capita basis, as all provinces spend less than $100/year per person on the arts and culture sector. Comparisons across provinces, however, show that the Government of Saskatchewan is quite generous relative to the provincial governments of other provinces, ranking third among the provinces in total expenditures per capita. Quebec and Manitoba devote the most resources per capita to arts and culture, followed by Saskatchewan and Prince Edward Island. The Ontario government spends the least per capita by a large margin, joined by Nova Scotia, Alberta, and British Columbia, which all spend less than $64/year per person. In the grants, contributions, and transfers category, Quebec and Manitoba lead the way again, followed by Saskatchewan and Newfoundland. Relative to its total 12 SIPP PUBLIC POLICY PAPER #54

17 expenditures, the Government of Prince Edward Island spends very little on grants, contributions, and transfers, indicating that a large proportion of its expenditures are incurred as government operating expense. As with total expenditures, Ontario offers the least support in this category. As the largest source of public funding for the arts and culture in Canada ($3.5 billion in total in ), it is important to consider how the federal government allocates its resources among the provinces. Table 4 presents total cultural expenditures in each province by the federal government as well as the level of grants, contributions, and transfers given out to each province in These figures are presented on a per capita basis as well. Federal government spending is higher than provincial spending in all provinces except for the four western provinces, which receive significantly less than their eastern counterparts on a per capita basis. The highest spending per capita occurs in Quebec ($155), followed by Prince Edward Island ($138), Nova Scotia ($125), and Ontario ($118). The lowest spending occurs in Saskatchewan ($46), Alberta ($48), and British Columbia ($48). These three provinces each received less than one-third of the funding allocated to Quebec on a per capita basis. In terms of grants, contributions, and transfers, Prince Edward Island received the most federal funding per capita, followed by Quebec, Nova Scotia, and Ontario. In this category, Saskatchewan again received the least federal support, followed by Alberta, British Columbia, and Newfoundland. In contrast to provincial government spending, a greater proportion of federal funding is consumed by operating expenses, as opposed to grants and transfers in all provinces. Table 4: Total Cultural Expenditures as well as Grants, Contributions, and Transfers by the Federal Government in Province Total Expenditures ($000s) Source: Statistics Canada, 2007b Total Expenditures Per Capita ($) Capital and Operating Grants, Contributions, and Transfers ($000s) Capital and Operating Grants, Contributions, and Transfers Per Capita ($) Newfoundland 45, , Prince Edward Is. 19, , Nova Scotia 117, , New Brunswick 56, , Quebec 1,171, , Ontario 1,463, , Manitoba 85, , Saskatchewan 45, , Alberta 152, , British Columbia 203, , Average A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 13

18 The final government category that can be compared across provinces is municipal government expenditures. Again, due to data limitations, these expenses have not been broken down into various expenditure categories. Table 5 shows total and per capita cultural expenditures incurred by municipal governments in all provinces for It is apparent in Table 5 that municipal governments devote substantial resources to the cultural sector in all provinces. In Ontario, for example, per capita expenditures by municipal governments are $21 higher than provincial government expenditures in that province. British Columbia s municipal governments spent $11 more per person than the provincial government. In all remaining provinces, however, provincial governments out-spent their respective municipal governments. The lowest levels of municipal government spending on arts and culture occurred in the four Atlantic provinces. Saskatchewan compares very favourably with the other provinces in municipal expenditures at $73/year per capita, ranking second only to British Columbia. Table 5: Total and Per Capita Cultural Expenditures, by Municipal Governments, by Province, Province Total Expenditures ($000s) Total Expenditures Per Capita ($) Newfoundland 11, Prince Edward Is. 2, Nova Scotia 34, New Brunswick 24, Quebec 422, Ontario 892, Manitoba 65, Saskatchewan 72, Alberta 188, British Columbia 314, Average 64 Source: Statistics Canada The Daily, 2005 It is evident in the above tables that the magnitude of cultural support from the three levels of government varies considerably among the provinces. The Ontario provincial government, for example, provides the least support per capita, while municipal governments in that province provide the third most support. In contrast, Prince Edward Island (PEI) receives the least support from municipal governments but receives very high levels of support from both the provincial and federal governments. These differences in funding are perhaps indicative of the relative size of the provinces and their cities, as well as possible substitution among levels of government. Ontario has cities large enough to support large-scale arts and culture venues and activities that would not be feasible in smaller places. Smaller cities, such as those in PEI, are unable to support the same types of venues and thus municipal expenditures are limited. In addition, simple budget size and constraints may explain part of the per capita differences. Fundamentally, the per capita expenditure differences may also reflect differences in the value to the municipalities of having the arts and culture facilities and 14 SIPP PUBLIC POLICY PAPER #54

19 activities present. In those settings where this sector is (perceived to be) a significant contributor to the tourist industry or to the attractiveness of the city for recruitment, expenditures are likely to be higher. To some extent, differences in municipal per capita funding are offset by those from other levels of government. Table 6 shows the total resources allocated by all levels of government to the cultural sector in each province. The rankings show that the combined government expenditures on cultural activities are highest in Quebec at $308 per capita. This is 27% higher than the second ranked province (PEI) and 29% higher than the average of all provinces. Saskatchewan ranks sixth among the provinces, 13% below the average of all provinces. Expenditures in Newfoundland, New Brunswick, Alberta, and British Columbia were less than Saskatchewan, with expenditures in Alberta totaling $169 per capita, which is just over half of the amount received by Quebec and 29% below the average of all provinces. Table 6: Total and Per Capita Cultural Expenditures, All Levels of Government, by Province, Province Total Expenditures ($000s) Total Expenditures Per Capita ($) Newfoundland 95, Prince Edward Is. 33, Nova Scotia 209, New Brunswick 132, Quebec 2,320, Ontario 2,984, Manitoba 262, Saskatchewan 206, Alberta 540, British Columbia 782, Average 238 Source: Statistics Canada, 2007a, 200b; Statistics Canada The Daily, IDENTIFYING ISSUES WITH SASKATCHEWAN S CULTURAL POLICY Having provided an overview of Saskatchewan s arts and culture sector including its various sources of funding, it is possible to examine some of the issues identified by various stakeholders within the sector. As a precursor to this, it is important to provide a context for these issues by detailing some of the historical changes made to cultural policy by the Government of Saskatchewan. As highlighted earlier, cultural policy in Saskatchewan is the responsibility of the Department of Culture, Youth and Recreation. Some of the policy decisions made or prompted by the department, and their implications, are summarized in Table 7. The chronology attempts to identify all major policy events involving the provincial government but focuses more heavily on policy events that have occurred in the recent past, as the implications of these events are more likely to be playing out still in the sector. A SASKATCHEWAN INSTITUTE OF PUBLIC POLICY PUBLICATION 15

20 Table 7 6 : Changes in Cultural Policy by the Government of Saskatchewan since 1972 Year Policy Decision Implication Department of Culture and Youth is created Interprovincial Lotteries Act is introduced SaskSport is designated manager of lotteries Lottery proceeds funding split is established at 50% sport, 40% culture, and 10% recreation Sask Trust (i.e. SaskSport) creates funding priority categories (I, II, III) Cultural Policy Secretariat is established Saskatchewan Council of Cultural Organizations (SCCO) is established Lottery funding to Priority II and III organizations is suspended because of shortfall SAA is created as an ad hoc committee to voice the arts and culture sector s concerns Arts Board takes over responsibility for funding Priority II organizations Government agrees to address SAA concerns but is voted out of office shortly after agreement is reached New government publishes cultural policy Minister imposes a cap on lottery funds available for redistribution The provincial government takes a formal/active role in the arts and culture sector Commitment by the government to fund the arts and culture through lottery proceeds Government relies on non-profit sector for management of lottery proceeds The importance of funding culture is acknowledged, assigned 40% of lottery proceeds Funding priority categories suggest the potential for funding shortages does exist Government acknowledges the need to develop cultural policy for the province SCCO assumes role of administering lottery proceeds to the arts and culture sector Many organizations have to adjust spending Arts and culture sector requests provincial government address funding shortages and develop a workable policy Shifting responsibilities among stakeholders creates instability in the cultural community Arts and culture sector must re-orient to deal with new government New government affirms its commitment to the arts and culture sector Lottery surplus money is directed into the GRF instead of to the SCCO for distribution 1988 Minster requests that the Arts Board develop a 3-year plan to stabilize arts community Government acknowledges issues of instability within the cultural sector 16 SIPP PUBLIC POLICY PAPER #54